** FORECASTS USING FUND'S INCOME FROM ASSETS

global r = 0.05
global rho = 0.29 // autocorrelation coefficient of income from assets
global q = 1/(1+$r)

	*Consumption response to income innovation 
	display 0.5 * 0.21 * (1-$q) * ( 1 + $q*(1+$rho) + $q^2*(1+$rho+$rho^2) + $q^3*(1+$rho+$rho^2+$rho^3) + $q^4*(1+$rho+$rho^2+$rho^3+$rho^4)/(1-$q*$rho) )


** FORECASTS USING DIVIDEND TIME SERIES
global rhoD = 0.76 // dividend's autocorrelation coefficient

	*Consumption response to income innovation 
	display (1-$q)/(1-$q*$rhoD)

